TC Media, a division of TC Transcontinental, and Sun Media Corporation, a
subsidiary of Quebecor Media, announce that they have signed a final agreement
under which the 74 Sun Media community papers and associated web properties in
Quebec will be acquired by TC Media for an amount of $75 million. The agreement
has been approved by the boards of directors of both companies, but is subject
to regulatory approval from, among others, the Competition Bureau. During the
period in which this transaction is being reviewed, the two companies will
remain independent and will continue their normal operations. Sun Media will
thus continue to publish the community papers covered by the agreement. 


"Acquiring Sun Media's 74 community papers in Quebec is in line with our
strategy to strengthen the core assets of TC Media and develop a local digital
media offering for businesses and communities," said Francois Olivier, President
and CEO of TC Transcontinental. "This transaction will add approximately $20
million to TC Transcontinental's operating income before amortization. It will
also give us the opportunity to continue building multiplatform offerings across
all of Quebec by drawing on the talents of our people and on those who work on
the Sun Media community papers in Quebec. We are enthusiastic about welcoming
them soon."


"The digital revolution has completely transformed the local print media market
in recent years. Clients can now place their ads on a multitude of platforms
that did not exist just over a decade ago," said Robert Depatie, President and
CEO of Quebecor Media, parent company of Sun Media. "We are delighted that with
this transaction we are ensuring Quebec ownership of these papers for the future
by selling them to another major Quebec company, TC Media. We wish to thank all
the employees who for decades have made it possible for these local papers to
keep their communities up-to-date on local events," said Depatie.


Print contract

As part of this transaction, TC Transcontinental has also signed a parallel
agreement with Quebecor Media to print some of its magazines and direct
marketing materials. Thus, on or about February 1, 2014, TC Transcontinental
Printing will start printing Quebecor Media products. 


"Today's announcement by TC Transcontinental and Quebecor Media is a historic
one. On the one hand it shows the relevance of our state-of-the-art printing
platform and our ability to help publishers and marketers, and on the other it
demonstrates our ability to change in keeping with the new realities of the
local media market," noted Olivier.


About TC Transcontinental

Largest printer and leading provider of media and marketing activation solutions
in Canada, TC Transcontinental creates products and services that allow
businesses to attract, reach and retain their target customers. The Corporation
specializes in print and digital media, the production of magazines, newspapers,
books and custom content, mass and personalized marketing, interactive and
mobile applications, and door-to-door distribution.


Transcontinental Inc. (TSX:TCL.A)(TSX:TCL.B)(TSX:TCL.PR.D), known by the brands
TC Transcontinental, TC Media and TC Transcontinental Printing, has more than
9,000 employees in Canada and the United States, and revenues of C$2.1 billion
in 2013. Website www.tc.tc.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Media: Nathalie St-Jean
Senior Advisor, Corporate Communications
TC Transcontinental
Telephone : 514 954-3581
nathalie.st-jean@tc.tc
www.tc.tc


Financial Community: Jennifer F. McCaughey
Senior Director, Investor Relations
and External Corporate Communications
TC Transcontinental
Telephone : 514 954-2821
jennifer.mccaughey@tc.tc / www.tc.tc
Transcontinental (TSX:TCL.B)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Transcontinental Charts.
Transcontinental (TSX:TCL.B)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Transcontinental Charts.